Real estate e-report 2015 | Page 3

Special focus: Real estate José Luis García-Manso, partner at Pérez-Llorca, says: “Buildings in the city centre of Madrid and Barcelona are highly sought after for refurbishment, while residential development is growing again in specific areas. In addition, the hotel sector in Barcelona and Madrid is booming. Last but not least, we are seeing growth in logistics developments.” However, Edificio España, Madrid García-Manso points out that the core assets in these cities are becoming harder to come by, leaving investors looking for opportunities in different regions. Diego Armero, partner at Uría Menéndez, concurs: “Most investment funds are looking for yielding assets, not only prime assets in Madrid and Barcelona, but also assets in secondary locations. Some are even focusing on buying land and investing in the development of new properties, this being very recent and promising news.” It has largely been private equity funds, REITs and international investors snapping up assets but lawyers say many different types of players are moving into the market. “US opportunity and hedge funds, European fund managers and investment banks should remain active in the sector whereas core investors are expected to increase their appetite for Portuguese real estate assets,” Reigada Pereira claims. “It remains to be seen whether Cuatrecasas Gonçalves Pereira, players most affected by adds: “The current real estate Portuguese turmoil recover their market has brought larger and mojo – the recent legal changes more complex deals. This allows introduced in the tax framework applicable to Undertakings Lawyers are facing for Collective Investment may more complex and prove to be pivotal innovative deals now in that regard, compared to those 10 as well as the Portuguese REITs years ago. which are expected Emilio Gómez to take off and Hogan Lovells enhance the ability to attract new investors.” “ ” law firms to increase the size of teams involved in the deals and to bring together expertise from a range of practice areas related to real estate, such as private equity, contract, financing, planning, litigation and restructuring. More complex deals require in-depth knowledge of legal requirements and of market practice.” More innovative deals The emergence of a more sophisticated client base is resulting in ever-more